Abstract
In order to explore the effects of industry characteristics on the sources of technological product and process (TPP) innovation, this paper considers various sources in a united framework, and identifies their cross-industry similarities and differences. It sheds light on three Chinese high technology industries, and empirically confirms that in-house R&D, technology transfer, technology spillover and back-propagation of user innovations are all effective sources of TPP innovation. However, each source creates different productivity in different industries, which may be explained by the following industry characteristics: the dependence on foreign technology, the importance attached to inventive in-house R&D, the level of domestic technology, the relative proportions of foreign and domestic users.
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